How can you improve your credit score?

It's virtually impossible to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can't "on the spot." But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible.

Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Effective September 15, 2005, Connecticut residents can order a free credit report once each year, from each of the three credit bureaus at www.annualcreditreport.com You can dispute any inaccuracies right online. The bureaus will investigate and send you a response usually within 10-14 days. They will amend your report immediately after their investigation. Simplified Mortgages, LLC provides a no cost credit analysis and credit rebuilding plan specific to your credit report.

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

Unsolicited credit card solicitations in the mail do not count against your credit report. Although you do have the option, to request the credit bureaus do not share your information for this type of solicitation.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as many as 10 years, can significantly lower your score. It is never a good idea to take on more credit than you can handle.

Late payments work against you. It is extremely important to pay bills on time, even if it is only the monthly payment.

Do not "max out" your credit lines. The percentage of the balance owed should be maintained at 40% or less of the credit available. If the credit availalbe is $10,000.00 you should keep your balance owed under $4,000.00. By keeping your debt this low has a minimum effect on your credit score.

It is said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.